Rates
Well if you talked to me at the beginning of the week I would of said “lock” your rate, and as the week went on, rates got gradually worse and worse. And actually since April 16th, rates have continually worsened.
But this week, we saw a slight pause in the rate rocket, I do say pause, because technically rates should, and have been increasing.
This week, as with the 1st main week in each month, it is about jobs, jobs, and jobs. But we are also concern about wages.
The Federal Reserve has indicated that not only does the US economy need to add jobs, but it also needs to see wage inflation.
This week we saw Initial Jobless claims again come in low at 265,000 on a estimate of 280,000. Nice numbers and still WAY below that magical 300K
But we also saw ADP private payroll only added 169,000 private sector jobs, quite a bit less than the 200,000 expected, and again, for the 2nd month, below what was expected.
On this number, bonds rallied and rates improved.
Then today the big boy came out, and it had some negative numbers, sure unemployment dropped to 5.4%, AND the US added 223,000 new jobs, on a expectation of 218,000. But the bigger concern was 2 fold.
1st, March’s numbers were revised down from 126,000 (which was a HUGE miss) to 85,000, OUCH!
Then wages only increased by 0.1% on an expectation of 0.2%, which means wages didn’t outpace inflation, and that is a huge concern for the Federal Reserve.
These numbers caused the bond traders to speculate that the Federal Reserve will now hold off, even more, the inevitable rate increase, possible to December, and maybe in to 2016????
I am still in a locking mode, those who gambled, got REALLY lucky today, but I don’t expect luck to strike twice!
CFPB
Yep, the Sheriff is out again, rounding up bad guys and making them pay through the nose!
Latest is a title company back East, got the for $15,000,000 fine for helping loan officers market for refinances and them expected the loan officers to send the refinance to the title company.
I would highly encourage you to follow what the CFPB is doing and learn for others and their mistakes.
Web link here: http://www.consumerfinance.gov/newsroom/?topic=enforcement
The RE-10
Did you know, loan officer don’t not need to see the RE-10, because Idaho changed it from an Addendum to a Form, we don’t need to see them.
And we really don’t want to either, unless we have to, because if we are informed about repair items, then the UW is going to make sure that those repair items are completed. And the RE-10 has to be given to the appraiser.
My recommendation, don’t send it, unless you are changing something in the purchase agreement, like sales price, seller contributions, etc…
Rural Development and Kuna
Guess what, Kuna is eligible for Rural Development…already know that, AWESOME. Tell the rest of the agents in the area. I have had 2 agents in the last 2 weeks ask me when Kuna lost its RD designation!
Get more info here, including maps: http://www.375loan.com/loan_products/rd_home_loan/
Reverse Mortgage
New rules have gone into effect with regards to Reverse Mortgage, prior to last week, we didn’t need to include debts on credit report and other debts such as Taxes, Insurance, HOA dues.
But as of last week, we now have to take these items into account, AND ensure that people have enough money left over each month to pay for food….novel idea, right.
So for those people who were qualified prior to last week for a reverse mortgage to purchase a home, you might want to contact your borrowers and ensure that they are still qualified.